Sarasota Real Estate

2010-12-17T08:19:00.000-08:00

Local market enjoys sales, price rise in November 2010

November 2010 saw resurgence in the Sarasota real estate market, with more sales and higher median sale prices indicating a healthy seasonal boost. There were 534 total sales reported last month, compared to 487 in October 2010 and 553 in November 2009. The median sale price for single family homes rose to $160,100, from last month's figure of $147,500, and for condos the price stood at $159,000 - slightly higher than the October 2010 figure of $158,525. The stability in the median sale prices shows signs of improvement.

Overall sales rose by 9.7 percent in November 2010 compared to last month, but about 7 percent lower than last November, when the $8,000 homebuyer tax credit buoyed sales as the initial period was due to expire. Looking at the most recent five months, there has been a fairly steady trend in sales and prices, a sign of recovery.

Pending sales were also strong in November 2010, and at 764 were very near the total in November 2009 (793), when the market was strengthened by the homebuyer tax credit initiative. With no tax credit currently in effect, the high pending sales figure is evidence of a stronger market. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity.
The property sales breakdown in November 2010 was 369 single family home sales and 165 condos. Condo sales saw the biggest resurgence, growing 21.3 percent from October 2010.
"There certainly appears to be a solid foundation for consistent, stable sales and prices as we enter the new year," said 2010 SAR President Erick Shumway. "While the foreclosure situation remains a potential barrier to quicker price appreciation, the local market seems to be absorbing that factor and adjusting to the new reality."

The median sale price for single family homes over the past 12 months was $163,000, and for condos was $165,000. Last year at this time, looking back over the previous 12 months, the median sale price for single family was $160,000, and for condos was $198,500.

Inventory rose slightly in November 2010 to 6,207 from 6,069 in October 2010. But due to the higher sales volume, the months of inventory for single family homes dropped to 10.9 months in November 2010 from 11.1 months in October 2010. The figure was 9.4 months in November 2009. Months of inventory represents the number of months it would take to sell all available homes at the current pace. For condos, the figure fell to 13.3 months in November 2010 from 15.9 months in October 2010. It was at 14.6 months in November 2009. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

There was good news on the distressed property sales front, as short sales and foreclosure sales fell to 46 percent of the overall sales. Much lower sales prices for distressed sales continue to be the primary reason for the overall median price at a level lower than would be expected, with normal arm's length sales garnering three-times as much as bank-owned properties, and twice as much as short sales on average.

"The level of distressed sales dropped in November to 46 percent, from 50 percent in October and 54 percent in September," noted Shumway. "There are still two distinct markets in the Sarasota area - one consisting of distressed sales, and the other normal, arm's length sales. But it's encouraging to see that downward trend, and once the distressed sales get back to a normal, historical percentage, we should see a return to traditional appreciation levels."

Sarasota/Bradenton Chosen Top Place To Retire

2010-12-17T08:09:00.000-08:00

SARASOTA HERALD TRIBUNE
Published: Thursday, December 16, 2010

Portfolio.com, the national business news site, named the Sarasota-Bradenton market as the most desirable community for retirement.

The ranking is welcome news in a region that is still getting over the effects of the Great Recession and clearly banking on a rebound in the influx of retirees to fuel its economy.

In fact, many of the communities in the upper range of the list of 157 communities compiled by Portfolio.com represent economies heavily dependent on the real estate industry that are now struggling with some of the highest foreclosure rates in the nation.

Charlotte County was ninth of the top 10 retirement communities, which included six other Florida communities.

The rankings were based on an analysis of data from the American Community Survey, conducted in 2009 and released by the U.S. Census Bureau in September. The communities analyzed by Portfolio.com were from the top 157 metropolitan and “micropolitan” areas that had at least 40,000 residents who could be classified as seniors.

“The study explores a wide variety of markets, both in terms of size and geography,” said G. Scott Thomas, a demographer who created the analysis for Portfolio.com. “The markets that ranked the highest in the study were areas where the population of seniors is already substantial and growing rapidly.”

The combined Manatee and Sarasota county market was the largest on the top 10 list. Portfolio.com said that senior citizens represent 26.81 percent of the population of 688,126, or more than double the national average of 12.9 percent.

The business site said that “more than 95 percent of seniors residing in Bradenton-Sarasota were born out of state compared to only 53 percent of the elderly residents of a typical U.S. market who were born out of state.”

Second and third on the list were two communities in Arizona, another traditional retirement haven: Prescott and Lake Havasu City, respectively.

The next seven were Florida communities: Cape Coral-Fort Myers, Naples, Palm Bay-Melbourne, Homosassa Springs, Ocala, Punta Gorda (the Charlotte County metropolitan area) and Port St. Lucie.

Four other Florida markets — Tampa-St. Petersburg, Daytona Beach, Miami-Fort Lauderdale and Lakeland — were included among the top 20.

Also on that list were Seaford, Del.; Barnstable, Mass.; Santa Rosa, Calif.; Reno, Nev.; Phoenix; and Riverside-San Bernardino, Calif.

“Beginning next year, an unprecedented three million Americans will turn 65. While most of these seniors are expected to stay in their current homes, a significant number will decide to seek new places to live in other parts of the country,” said J. Jennings Moss, Portfolio.com's editor.

“In addition to warm cities, we've also seen that seniors are attracted to communities that already have a significant population of retirees,” Moss said.

“This demonstrates that seniors will go to places that already have a comfortable infrastructure in place.”

2010-11-17T10:59:00.000-08:00

Pending sales rise 10 percent in October 2010

Pending sales spiked by 10 percent in October 2010 in the Sarasota real estate market, signaling more closings in future months as the season begins in southwest Florida. There were 819 total pending sales reported last month, compared to 744 in September 2010 and 839 in October 2009. Pending sales reflect future closing activity and they are now trending upward.

Overall sales dropped by 11 percent in October 2010 compared to last month, and 15 percent from last year at this time. The drop is likely attributable to a slowdown in foreclosures prompted by lender concerns over faulty paperwork. Looking at the most recent four months, there has been a fairly steady trend in sales and prices, indicating a stabilizing of the market following more fluctuations earlier in the year.

Property sales in October 2010 stood at 487 total sales, compared to 547 September sales and 574 sales in September 2009. The breakdown was 351 single family home sales and 136 condos.

The median sale price for single family homes was $147,500 for October 2010, compared to $155,000 for single family homes in September, and $151,000 last October. The median sale price for condos was $158,525 in October 2010, higher than last month's figure of $150,450, but lower than the October 2009 figure of $220,000. Last year's figure was a statistical anomaly likely caused by an influx of high-end condominium buyers all closing during the same time period.

"As we enter the traditionally busier season, the local real estate market appears to be on solid ground," said 2010 SAR President Erick Shumway. "Now that the mid-term election is behind us, and the foreclosure freeze seems to have thawed, there is certainly reason for optimism. Sales and showing activity have been consistent, and even with 50 percent of the market dominated by distressed sales, the median prices are also relatively steady."

The median sale price for single family homes over the past 12 months was $163,900, and for condos was $169,000. Last year at this time, looking back over the previous 12 months, the median sale price for single family was $160,000, and for condos was $199,450.

The overall inventory dropped from 6,226 in September to 6,069 in October, a good sign for future price appreciation as long as demand remains steady. The months of inventory for single family homes in October 2010 rose to 11.1 months from the figure of 9.9 months in September. The figure was 9.3 months in October 2009. The rise reflects the lower sales during the month. Months of inventory represents the number of months it would take to sell all available homes at the current pace. For condos, the figure rose to 15.9 months from 15.1 months in September. It was at 15.0 months in October 2009. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

Distressed property sales continue to be the primary reason for the overall median price at a level lower than would be expected, with normal arm's length sales garnering three-times as much as bank-owned properties, and twice as much as short sales on average. For example, condo foreclosure sales saw a median price of $90,000 in October, compared to a median price of $273,000 for arm's length condo sales.

"The level of distressed sales dropped a little in October, from 54 percent down to 50 percent, which is most likely attributable to some major banks delaying many foreclosures to check on potentially flawed paperwork," explained Shumway. "When the distressed sales are finally weeded out, and we have primarily arm's length sales, we should begin to see a return to traditional, historic pricing trends in the market."

Click HERE for the complete press release in PDF format, plus two pages of statistical charts.

If you haven’t seen the renderings for the approved improvements to Nathan Benderson Park, check out this link. This will be a real asset to the community bringing more people to our area to visit.

2010-10-19T08:15:00.000-07:00

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4 Things Buyers Should Know About The Foreclosure Freeze

2010-10-14T05:36:00.000-07:00

If you watch a TV news show or spend more than 5 minutes on the web without hearing about the massive "robo-signing" foreclosure scandal that is rapidly encompassing the biggest banks in the country, here are 4 things home buyers need to know about this breaking real estate news, and how it impacts them.

1. What is robo-signing is, and what all the fuss is about? The phrase robo-signing refers to what we’re now realizing has been a very common practice in the banks’ foreclosure document processing divisions, where one person was essentially given the job of signing as many 10,000 foreclosure documents per month, by hand. These individuals were supposed to be reviewing the files, making sure grounds for foreclosure actually existed, signing the docs in front of notaries. But because of the volume of documents, what they actually did was just sign thousands of documents at a time, without even reading them, and ship them off somewhere else to be notarized.

If you do the math on an 8 hour workday, you'll see that that only gives the staffer 1.5 minute to review each file and documents to make sure the foreclosure is warranted. That's not humanly possible, which is how these staffers got the nickname “robo-signers”

Government regulators are very concerned that the banks may have been taking people's homes without following the proper legal procedures. As a result, 40 states' attorneys general are teaming up to launch a multi-state investigation, and the federal Comptroller of the Currency and federal attorney general may also get involved in investigating this issue.

2. Will the freeze will make the banks cancel buyer contracts on REO properties? Currently, the freeze impacts bank-owned properties that are owned and/or serviced by Ally Financial/GMAC Mortgage, JP Morgan Chase, and some properties that were owned by Bank of America. Generally, contracts to buy these homes are being put on hold and extended for 30 days. As well, the banks are often reaching out directly to buyers and offering them the option to cancel their contracts and recoup their deposit money.

3. Is it safe to buy a foreclosed home? There's lots of talk right now about the "clouds" that this scandal will create on the titles to homes that were foreclosed by the banks' foreclosure mills. And that makes sense: if the home wasn't properly foreclosed on in the first place, then the legitimacy of the bank's resale can be called into question. Normally, yoou wouldn't worry about it, buyer - that's why you'll get title insurance. But last week, 3 of America's largest title company insurers declared that they will not offer title insurance on a number of the homes that may have been involved in this scandal.

In the vast majority of cases – when the foreclosure was justified and a bona fide purchaser, someone who was not involved in the bank’s wrongdoing, has purchased the home, courts will not reverse these foreclosures or their sale to buyers. But if you’re in the market for a foreclosure, get clear on which bank owns the place as soon as you can, and run the property past your title insurer before you get too far into the transaction to make sure they can write a policy of title insurance on the property before you spend too much money on inspections and appraisals.

4. How the foreclosure freeze will impact American home values, after you buy. In the short term, these freezes might cause prices to stabilize, as we expect to see the supply of foreclosures for sale start to shrink. However, if these freezes stretch out for a long period of time, they could simply be delaying many inevitable foreclosures, which could delay the recovery of the housing market and home prices, over time. I wouldn't expect to see the freezes cause prices to drop much beyond where they are now, but if they stretch out, they could keep appreciation flat for a longer period of time.

Buyer Advice: Don’t underestimate the deals you can get on non-foreclosed properties. You can often get just as good of a price on a better property with more flexibility on the seller’s part in terms of repairs and other negotiation points if you buy a home from an individual seller, as opposed to a bank-owned property.

Housing Market at or Near Bottom!

2010-10-13T12:18:00.000-07:00

SAN FRANCISCO – Oct. 13, 2010 – Beacon Economics’ new Beacon Economics Home Affordability Index finds that in August homes were at their most affordable level since data became available (1969), over 40 years ago. Beacon Economics developed the Beacon Economics Home Affordability Index based on the percentage of income an average family would need in order to make mortgage payments on an average priced home.

The August estimate shows the cost of homeownership (mortgage interest plus principal payments after a 20 percent downpayment) falling to 16.9 percent from 17.1 percent in July. Overall, the Beacon Economics Home Affordability Index has remained below 20 percent for the past twenty-one months.

“Home affordability has reached an historic high,” says Beacon Economics Founding Principal Christopher Thornberg. “Nationwide, prices are down approximately 25 percent from their peak, and mortgage financing rates are at all-time lows.” Moreover, the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction, according to Thornberg.

“While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us,” adds Beacon Economics Research Manager Jordan G. Levine. “We expect prices to stabilize around current levels and likely be higher in the next twelve months.”

Thornberg agrees. “Although there could be some modest volatility over the next several months, our research indicates the housing market is at or near the bottom,” he says.

The Beacon Economics Home Affordability Index is intended to help homebuyers and policymakers alike understand the current state of the market.

© 2010 Florida Realtors®

10 Things That Impress Buyers

2010-10-12T07:26:00.000-07:00

1. Impress Buyers With A Beautiful Entrance
Always put a fresh coat of paint on the front door and if you don't have an entrance, make one. A lot of buyers don't like to just go through the front door into the living room. This problem, more common in condos and apartments, is solved by cleverly placing furniture to create more of an entryway. A console table or chest of drawers with something over it creates a welcoming vignette.
2. Hardwood Floors
Most Realtors agree that most buyers are hunting for hardwood. You can bet that of all types of flooring, hardwood floors will have the most longevity and will never go out of style. A synthetic wood floor, like Pergo, is always a good option for those who can't afford hardwood. But know that a laminate floor "won't fool everyone - it has a hollow thud when you walk on it and it doesn't look the same.
3. Fabulous Fixtures
Fixtures are the jewelry of the house." Only the extremely detail-oriented among us will stop to inspect doorknobs, faucets and cabinet knobs, but designers and Realtors agree that buyers will prefer the look of a place that has coordinated fixtures that are a cut above standard developer grade. Replacing knobs and drawer pulls is the quickest way to make over a bathroom or kitchen. When it comes to faucets, for $60 or $70 dollars you can buy something infinitely better than what you likely already have.
4. Beautiful Baths
Marble counters, whirlpool baths and steam showers up the attractiveness of any bathroom. But if you don’t have these luxury items, it may be more practical to address the unattractive aspects of your existing bath.
You can rip out that big sheet mirror and those globe lights and replace them with an elegant framed mirror and sconce lighting on either side.This lighting scheme is also more flattering to the face.
5. Countertops
You’ve probably heard that granite is the secret to a contemporary kitchen, but that’s not necessarily what buyers are after. It’s really about the slab.. Buyers don’t want to see grout lines on their counters.So when it comes to slab countertops, granite is the top pick because it’s hard, nonporous and easy to care for. But then again, so is Corian, so are composite stone surfaces such as Silestone and, with the help of today’s sophisticated sealants, so are concrete, limestone, soapstone and marble.
Even butcher-block, which is much less expensive than stone, can be a more appealing alternative to tile or laminate countertops. You can sand it and oil it and it looks good again.
Already have granite? Make it cutting edge. You can knock it down and make it more matte, so it looks warmer and more inviting. Shiny surfaces can look very cold.
6. Stainless Steel
Why do buyers love stainless-steel appliances? It’s the power of suggestion. A kitchen with stainless appliances looks like a commercial kitchen. It makes people think that they’re great cooks, but because the finish shows fingerprints, it’s not for everyone.
As far as other alternatives go, designers agree that in general, black fixtures can look dated, while white is okay for a country kitchen. And some people are making appliances blend in beautifully by ordering front panels to match their cabinetry.
7. Pre-Organized Closets
Just as stainless appliances convince buyers that they are better cooks, closet organizers make buyers believe that they are better homemakers. If your closets are unadorned, don’t underestimate the importance of this easy addition.
They make you feel secure and calm and people need that. And while you don’t need to use high-end organizers, make sure that the materials are up-to-date. Today’s ideal would be melamine shelves, in bone or white, with some drawers and metal rods to maximize storage.
This organization shouldn’t stop in the closet – make sure your kitchen cabinets are orderly, too. If buyers open up a door and see a big pantry, but it’s not organized properly, it won’t be as exciting as something already organized with a place for everything.
8. Lighting
Floor lamps just don’t cut it these days. If your home doesn’t get a lot of natural light, consider installing recessed lighting or new sconces, or both, so the buyer won’t struggle to figure out how to brighten up the space.
Lighting is probably the most overlooked, yet the most important aspect of interior decoration. “In newer construction, you don’t have sufficient lighting. The reality is that everyone needs three types – task, ambient and decorative lighting – which allow you to change the mood of the room.”
When it comes to recessed lighting, know that the smaller the fixture, the more updated it is. Using halogen bulbs gives a cleaner, more modern look.
9. Built-Ins
Many buyers view built-ins as “free furniture.” Well-crafted bookshelves, china cabinets and entertainment units can make a home stand out as quality. It can be a catch-22 because some people would rather organize their own furniture. Sometimes it’s better to have freestanding pieces that look like built-ins, that you can give the buyer the option to purchase.
10. Grass Is Greener
Are the homebuyers in your area families with young children? If so, they’ll be drawn to spaces with a flat, open lawn.
Were you thinking of putting in a concrete patio or rock garden? Don’t bother if you’re putting your home on the market. A flat yard is a real plus. Spend some money and put in the grass. It’s a good seller.

Foreclosures Stopped

2010-10-08T12:24:00.000-07:00

Today, Bank of America became the first bank to stop sales of foreclosed homes in all 50 states. Other mortgage lenders such as PNC and GMAC Mortgage appear to be taking similar measures to insure that homeowners are not being evicted using flawed court papers signed by "robo-signers". While this appears to be a positive move for the banks, what other steps should the banks take to help the foreclosure process?

I use a Professional Photographer for my Listings

2010-10-08T11:32:00.000-07:00

Photography spending pays off
I only use a professional photographer for my listings and, according to the Wall Street Journal, no shocker here: Sales listings taken by higher-end single-lens-reflex cameras (SLR), preferred by professionals, garner higher prices than properties whose sellers use point-and-shoot cameras, according to Redfin Corp., a Seattle-area real estate firm. Redfin analyzed listings in Boston and Long Island and determined that houses with better photos sold for anywhere from $934 to $116,076 more compared to listings using photos from point-and-click cameras. The data also showed that properties with better photos got more online views. Only about 15 percent of sellers use professional photographers and better cameras. Redfin says that about half of $1 million-plus listings were shot with cheaper point-and-shoot cameras.

Mortgage Rates - October 8

2010-10-08T11:11:00.000-07:00

30 Year Fixed Rates dropped to 4.125% today in response to a worse than expected September Jobs Report and the anticipation that (QE2) is a lock for later this year. So what does all this mean for Mortgage Rates? Simply put...as long as Unemployment remains high, and continues to move higher, mortgage rates will remain at these low levels and will ultimately move even lower towards a 4.000% 30 Year Fixed Rate. And equally important to potential homebuyers is the question of "when will rates move lower?" Look for this to happen immediately, well BEFORE the Federal Reserve initiates the 2nd round of Quantitative Easing (QE2). Why before....you might ask? Bond Traders in Mortgage Backed Securities will "buy the rumor" of (QE2) happening in the near future which will push rates lower. And when the Federal Reserve pulls the trigger on (QE2) and starts the purchase program, Bond Traders will then "sell the fact" and take profits which may move mortgage rates back up. How much lower rates will fall on the rumor and how much higher will they move when they sell the fact is difficult to assess but no matter what happens, It’s a great time to buy a new home in Sarasota using mortgage financing.

Where to Buy a Home for Less Than $800 a Month?

2010-10-04T13:16:00.000-07:00

Although the real estate crash has been a nightmare for homeowners, it has created some outstanding opportunities for would-be buyers. Home prices in 20 major cities dropped 33 percent from the summer of 2006 to the spring of 2009--and in certain markets, the plunge was even steeper. At the same time, the federal government's efforts to revive the housing market have helped drive financing costs to record lows. Thirty-year fixed mortgage rates fell to an average of 4.32 percent for the week ending September 2. That's the lowest level in nearly 40 years of record-keeping. Lower property values and dirt-cheap mortgage rates have combined to restore affordability to many real estate markets that were once wildly overpriced. Right now, housing is as affordable as it has been since at least the 1970s says a U.S. economist for IHS Global Insight. Starting with the National Association of Realtors' median home price data for 159 distinct metropolitan statistical areas as of the second quarter of 2010. After subtracting a 20 percent down payment from a market's median price and plugging in the remaining figure into a mortgage calculator using a 4.32 percent interest rate on a 30-year fixed loan. The exercise produces a monthly payment figure for mortgage principal and interest, which represents the bulk of most property owners' monthly housing costs. This figure does not include monthly costs for utilities, insurance, or taxes, which can vary a great deal from one place to another. It doesn't reflect the one-time costs associated with a home purchase, such as the down payment and closing costs.
Using this calculation, here is a look at one city where you can buy a home for less than $800 a month:

Sarasota, Fla.: Although exotic mortgage products and investor excitement sent home prices in Sarasota soaring during the housing boom, the subsequent crash hit the market as hard as anywhere in the state. Median home prices in the Sarasota area plummeted from $311,000 in 2007 to $185,000 in the second quarter of this year. But this steep drop only makes this sun-drenched community on Florida's west coast more attractive for home buyers, says Jack McCabe of McCabe Research & Consulting. McCabe says Sarasota's smaller size provides its residents with a more manageable lifestyle--with less traffic, for example--than big cities like Tampa Bay or Orlando. At the same time, the area has a beautiful waterfront and plenty of art museums and theater productions. Anyone considering buying property in Florida should have Sarasota at the top of their list, according to McCabe "It's a great market," he says. "I really expect in the next 20 years it is going to be one of the most desirable markets in Florida for baby boomers to retire." The median home price in the Sarasota area was $185,000 in the second quarter of this year. After putting 20 percent--or $37,000--down, monthly payments for mortgage principal and interest on a median-priced Sarasota area home come to $734.

SAR Monthly Statistics Released for August 2010

2010-10-04T12:58:00.000-07:00

August property sales up; prices remain stable

There were 408 single family home sales in August, with the median price at $154,500, almost identical to last month's figure of $155,000. The median price was also $155,000 in August 2009, and has been steady throughout the last 12 months ($161,000), fluctuating between a high of $170,000 and a low of $150,000.

Condos saw 159 sales in August, with the median price rising by 22 percent to $155,000 from last month's figure of $127,000. For the last 12 months combined, the median sale price for condos was $169,900. Distressed condo sales have dragged the overall median price down substantially, with normal arm's length sales garnering three-times as much as bank-owned properties, and twice as much as short sales on average.

Pending sales also rose in August to 816, from last month's figure of 653, for a 25 percent increase. The rise bodes well for the closings in the early fall months.

"It was very encouraging to see that the market recovered nicely after a drop in sales from June to July," said 2010 SAR President Erick Shumway. "After experiencing a five-year high in sales for the second quarter, everyone knew the loss of the homebuyer tax credit would have a negative impact. But we saw a big jump in sales for August, and prices held steady, so this market still has legs and the recovery appears to be a healthy one."

The level of sales of distressed properties (foreclosures and short sales) dropped in August 2010 to 47 percent from last month's figure of 48.7 percent of the overall market. Distressed market sales were at a high in late 2009, and have hovered in the range between 44 and 48 percent since that time.

The property inventory level remained fairly consistent, remaining just over the 6,000 level in August 2010, which remains one of the lowest monthly levels since late summer of 2005.

The months of inventory for single family homes in August 2010 dropped to 9.5 months from 10.4 months in July. The figure was 10.3 months in August 2009. This figure represents the number of months it would take to sell all available homes at the current pace. For condos, the figure dropped to 13.5 months from 14.4 months in July 2010. It was substantially lower than the August 2009 figure of 20.5 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.
The Sarasota real estate market rebounded in August 2010 after an expected slower July, following the expiration of the federal $8,000 homebuyer incentive. Sales were up 8 percent over July 2010, and up 14.3 percent over August 2009. Property sales in August 2010 stood at 567 total sales. This compared to 525 sales in July 2010 and 496 sales in August 2009.